AMGN stuck within tight trading range
Amgen Inc. (AMGN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AMGN finished the week -5.73% lower at 226.43 after gaining $1.65 (0.73%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMGN as at May 22, 2020):
Friday's trading range has been $3.16 (1.41%), that's far below the last trading month's daily average range of $6.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMGN. Prices continued to consolidate within a tight trading range between 223.61 and 230.12 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 227.59 (R1). After having been unable to move lower than 224.00 in the prior session, Amgen found buyers again around the same price level today at 223.61. The last time this happened on May 15th, AMGN actually lost -2.92% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 234.63.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Amgen. Out of 69 times, AMGN closed higher 55.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.07% with an average market move of 1.31%.